Health Insurance Refunds Altered

December 2, 2011

HHS issued a revision on Friday

Part of healthcare reform requires insurance companies to spend a certain amount of premium on medical care. If the provider did not meet the mandated medical loss ratio (MLR), refunds must be issued to consumers. On Friday, HHS revised the rule to state that such refunds would be tax-free. Along with the refund, insurers will have to send a notice to the consumer along with what the MLR means and how it has improved under the health care law.

Also reported in the December 5, 2011 NAHU Newswire is a story on the upcoming mandatory Medicare pay cuts as a result of the congressional debt panel's failure to reach a deal.

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